Is FedEx at Peak Altitude?

Solid quarterly results are cheering investors. However, given a 28% rally in the past year and a frothy valuation, the stock may no longer deliver.

FedEx's cost-cutting efforts are clearly paying off. However, despite recent strength, the stock may not pay off for investors.

On Wednesday, the air and ground package delivery giant reported earnings of $1.53 per share for the fiscal first quarter, ended Aug. 31, on revenue of $11.02 billion. That exceeded the consensus estimate of $1.50 per share in earnings and $11 billion in revenue.